Hsi-kuan beats the Russian boxer, winning back much pride for the Chinese. He earns much acclaim from Chien Lung, who names the boxing invented by him the Hung boxing. When he returns to Canton, Chien Lung presents him a blade, but he takes only the tassel tied to it as souvenir.

Hsi-kuan revisits the Shaolin Temple and meets a blind old beggar. He claims to be an ex-Shaolin disciple, and encourages Hsi-kuan to rebuild the Shaolin Temple.

Hsi-kuan returns home to witness a big tragedy at home. Thereupon he goes to see Village Chief Li, trying to reconcile with him, then to visit Mei's grave, and recovers Wen-ting. On the opening day of Hsi-kuan's gym, Chin-chung goes to challenge Hsi-kuan to a duel. Hsi-kuan pulls the punches to appease him. Noting that Chin-chung's boxing is the combination of Shaolin and O-Mei, Hsi-kuan fears that Wen-ting's Shaolin boxing alone can't cope with him.… ...